Question 1

A small fund of money kept in the office is known as:

Accepted Answer

A)  voucher fund. 
B)  petty cash. 
C)  revenue. 
D)  bank draft. 
A)  voucher fund. 
B)  petty cash. 
C)  revenue. 
D)  bank draft. B

Question 2

An employer is required to have every employee complete an Employee's Withholding Allowance Certificate (Form W-4). This form determines the number of exemptions an employee will claim.

Accepted Answer

A)  The first statement is true and the second statement is false. 
B)  The first statement is false and the second statement is true. 
C)  Both statements are true. 
D)  Both statements are false. 
A)  The first statement is true and the second statement is false. 
B)  The first statement is false and the second statement is true. 
C)  Both statements are true. 
D)  Both statements are false. C

Question 3

Which of the following forms must be given to each employee no later than January 31 of each year?

Accepted Answer

A)  Federal Form #941 
B)  FUTA form 
C)  W-2 form 
D)  W-3 form 
E)  W-4 form 
A)  Federal Form #941 
B)  FUTA form 
C)  W-2 form 
D)  W-3 form 
E)  W-4 form C

Question 4

The dentist's YTD earnings are $120,323. She earned $5000 this pay period. The FICA is calculated at 7.65%, which is split between Social Security at 6.2% on the first $76,200 earned in the year and the Medicare at 1.45% on all earnings, with no yearly cap. How much is withheld for the Medicare portion of the FICA?

Accepted Answer

A)  $0 
B)  $7.25 
C)  $72.50 
D)  $725 
A)  $0 
B)  $7.25 
C)  $72.50 
D)  $725

Question 5

A petty cash fund requires less accuracy than a checking account.

Accepted Answer

A) True 
 B)False

Question 6

Net pay is the amount of earnings before deductions are taken.

Accepted Answer

A) True 
 B)False

Question 7

FUTA refers to the:

Accepted Answer

A)  Federal Unemployment Trade Agreement. 
B)  Employers' Annual Federal Unemployment Tax Return. 
C)  Federal Universal Tax Agreement. 
A)  Federal Unemployment Trade Agreement. 
B)  Employers' Annual Federal Unemployment Tax Return. 
C)  Federal Universal Tax Agreement.

Question 8

Some administrative assistants may be given power of attorney that entitles them to sign checks for the practice.

Accepted Answer

A) True 
 B)False

Question 9

A Federal Tax Deposit Coupon book (Form 8109) is used by an employer to transmit withheld income tax and FICA taxes to the federal depository.

Accepted Answer

A) True 
 B)False

Question 10

Reconciliation of a bank statement is typically done:

Accepted Answer

A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  annually. 
A)  weekly. 
B)  monthly. 
C)  quarterly. 
D)  annually.

Question 11

FICA taxes include Social Security and Medicare taxes.

Accepted Answer

A) True 
 B)False

Question 12

As part of an accounts payable system, which record reflects all deposits and checks made from the account?

Accepted Answer

A)  Payroll 
B)  Check register 
C)  Credit slip 
D)  Invoice 
A)  Payroll 
B)  Check register 
C)  Credit slip 
D)  Invoice

Question 13

A bank draft is a check drawn by the cashier of one bank on another bank where it has available funds on deposit or credit.

Accepted Answer

A) True 
 B)False

Question 14

When writing a check, you do not need to enter the amount in words.

Accepted Answer

A) True 
 B)False

Question 15

The employer has responsibilities for withholding, depositing, paying, and reporting federal income tax.

Accepted Answer

A) True 
 B)False

Question 16

What percentage of financial transactions are handled by checks in a dental office?

Accepted Answer

A)  30% 
B)  50% 
C)  90% 
D)  60% 
A)  30% 
B)  50% 
C)  90% 
D)  60%

Question 17

Certified checks and money orders generally involve fees, whereas cashier's checks are issued free of charge.

Accepted Answer

A) True 
 B)False

Question 18

The data that are magnetically encoded on the bottom of a check may include the American Bankers Association (ABA) identification number.

Accepted Answer

A) True 
 B)False

Question 19

A personal check that has a guarantee that the funds have been set aside by the bank for payment of the check is a:

Accepted Answer

A)  cashier's check. 
B)  certified check. 
C)  money order. 
D)  traveler's check. 
A)  cashier's check. 
B)  certified check. 
C)  money order. 
D)  traveler's check.

Question 20

Checks can be signed by the administrative assistant if this person's name is on a signature card required by the bank. In all cases, a power of attorney form must also be completed.

Accepted Answer

A)  The first statement is true and the second statement is false. 
B)  The first statement is false and the second statement is true. 
C)  Both statements are true. 
D)  Both statements are false. 
A)  The first statement is true and the second statement is false. 
B)  The first statement is false and the second statement is true. 
C)  Both statements are true. 
D)  Both statements are false.

A small fund of money kept in the office is known as:

An employer is required to have every employee complete an Employee's Withholding Allowance Certificate (Form W-4). This form determines the number of exemptions an employee will claim.

Which of the following forms must be given to each employee no later than January 31 of each year?

A petty cash fund requires less accuracy than a checking account.

Net pay is the amount of earnings before deductions are taken.

FUTA refers to the:

Some administrative assistants may be given power of attorney that entitles them to sign checks for the practice.

A Federal Tax Deposit Coupon book (Form 8109) is used by an employer to transmit withheld income tax and FICA taxes to the federal depository.

Reconciliation of a bank statement is typically done:

FICA taxes include Social Security and Medicare taxes.

As part of an accounts payable system, which record reflects all deposits and checks made from the account?

A bank draft is a check drawn by the cashier of one bank on another bank where it has available funds on deposit or credit.

When writing a check, you do not need to enter the amount in words.

The employer has responsibilities for withholding, depositing, paying, and reporting federal income tax.

What percentage of financial transactions are handled by checks in a dental office?

Certified checks and money orders generally involve fees, whereas cashier's checks are issued free of charge.

The data that are magnetically encoded on the bottom of a check may include the American Bankers Association (ABA) identification number.

A personal check that has a guarantee that the funds have been set aside by the bank for payment of the check is a:

Checks can be signed by the administrative assistant if this person's name is on a signature card required by the bank. In all cases, a power of attorney form must also be completed.

The Business of Dentistry

Dental Team Management

Patient Management

Legal and Ethical Issues in the Dental Business Office

Technology in the Business Office

Office Design and Equipment Placement

Working With Dental Office Documents

Storage of Business Records

Written Communications

Telecommunications

Appointment Management Systems

Recall Systems

Inventory Systems and Supply Ordering

Dental Insurance

Financial Systems: Accounts Receivable

Infection Control Systems

Planning and Managing Your Career Path

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Exam 16: Other Financial Systems

A small fund of money kept in the office is known as:

An employer is required to have every employee complete an Employee's Withholding Allowance Certificate (Form W-4). This form determines the number of exemptions an employee will claim.

Which of the following forms must be given to each employee no later than January 31 of each year?

A petty cash fund requires less accuracy than a checking account.

Net pay is the amount of earnings before deductions are taken.

FUTA refers to the:

Some administrative assistants may be given power of attorney that entitles them to sign checks for the practice.

A Federal Tax Deposit Coupon book (Form 8109) is used by an employer to transmit withheld income tax and FICA taxes to the federal depository.

Reconciliation of a bank statement is typically done:

FICA taxes include Social Security and Medicare taxes.

As part of an accounts payable system, which record reflects all deposits and checks made from the account?

A bank draft is a check drawn by the cashier of one bank on another bank where it has available funds on deposit or credit.

When writing a check, you do not need to enter the amount in words.

The employer has responsibilities for withholding, depositing, paying, and reporting federal income tax.

What percentage of financial transactions are handled by checks in a dental office?

Certified checks and money orders generally involve fees, whereas cashier's checks are issued free of charge.

The data that are magnetically encoded on the bottom of a check may include the American Bankers Association (ABA) identification number.

A personal check that has a guarantee that the funds have been set aside by the bank for payment of the check is a:

Checks can be signed by the administrative assistant if this person's name is on a signature card required by the bank. In all cases, a power of attorney form must also be completed.

The Business of Dentistry

Dental Team Management

Patient Management

Legal and Ethical Issues in the Dental Business Office

Technology in the Business Office

Office Design and Equipment Placement

Working With Dental Office Documents

Storage of Business Records

Written Communications

Telecommunications

Appointment Management Systems

Recall Systems

Inventory Systems and Supply Ordering

Dental Insurance

Financial Systems: Accounts Receivable

Infection Control Systems

Planning and Managing Your Career Path

Filters